C.A.R. releases new forms after weeks of criticism 

Following intense scrutiny from both the Department of Justice and the Consumer Federation of America, the California Association of Realtors announced this week that it has made "numerous changes" to several forms, but stopped short of saying the revisions were in response to the criticisms.

How we got here: On June 24, C.A.R. emailed members to inform them that the association was in the process of revising its existing forms and creating several new ones in response to the NAR settlement and rule changes going into effect in August. The association also acknowledged that the DOJ was looking into the new forms, prompting C.A.R. to delay their release.

That same day, the Consumer Federation of America released a scathing report analyzing a draft version of C.A.R.'s new buyer agreement form. The watchdog group said the contract was "anti-consumer" and that certain provisions could be perceived as attempting to "circumvent the NAR Settlement."

C.A.R. shot back, saying the report was "misguided" and the CFA's claims were "wrong" and "absurd."

Removing offers of compensation: In a statement to members this week, C.A.R. said it was releasing new and revised forms on July 10, highlighting one key change: "We have made the decision to remove the listing broker's offer of compensation from these forms. While we recognize that the offer of compensation remains legal and valid, we nonetheless believe this change is in the best interests of our members and consumers."

The statement made no reference to the CFA or DOJ.

Brian Manson, C.A.R.'s general counsel, added separately that the association anticipates the removal of the offer of compensation from the forms — something that will be prohibited in the MLS starting Aug. 17 — "will become important in the near future."

In an email, Manson said that while offers of compensation were out, concessions would be allowed: "Our revised forms include information for listing brokers to discuss and document information about concessions the seller will consider."

When asked if C.A.R. had made the changes to satisfy the DOJ, Manson said no, telling Real Estate News that "C.A.R. has chosen to take this proactive approach in what it believes is in the best interests of its members and California consumers."

A new way forward: Manson also stated that "members and their clients are best served by making informed compensation decisions without relying on historically common practices." 

Other industry experts have reached similar conclusions, suggesting that those "common practices" of sharing compensation details are what got the industry into trouble with the DOJ and consumers, and going forward, real estate professionals should "stop sharing broker commissions."